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Budget 2011 avoids over $10b of borrowing by 2015 … and $5-7b in mixed ownership model proceeds Means we can redeploy existing capital, rather than always funding more from general revenue Funds around one-third of core investment, new schools, hospitals, broadband etc Average net borrowing falls to $100m a week in 2011/12, start repaying debt in 2014/15

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KiwiSaver lifts real savings

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Making WFF sustainable

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A better public service … Ensuring public agencies play their part Getting better value for taxpayers Efficiency savings of $980m over three years: $650m from agencies meeting costs of retirement savings schemes $330m from administration efficiency gains

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… and more frontline services Directing funding to frontline services $2.2b more for health – electives, disability support, new mothers $1.4b more for schools and early childhood Investing in key infrastructure $942m for ultra-fast broadband $250m invested in KiwiRail; $88m for Wellington Metro rail network More investment in roads and electricity

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Promoting savings and investment Govt back to surplus, wider investment opportunities Mixed ownership model to proceed from 2012  With New Zealanders at the front of the queue Creates an Earthquake Kiwi Bond, inflation bond Establishes local government funding agency Resources the new Financial Markets Authority

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Early signs of progress

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Platform for faster growth, jobs Budget 2011 next steps in Govt programme: Sets a faster path back to surplus in 2014/15  Even with the costs of rebuilding Christchurch Helps increase national savings  Large programmes sustainable, Government’s books in order, national savings increase Builds a strong platform for growth  Rebalancing economy, 170,000 new jobs